Icahn Enterprises L.P. (IEP) vs Ultrapar Participacoes S.A. (UGP)

Icahn Enterprises L.P. and Ultrapar Participacoes S.A. are both Oil & Gas Refining & Marketing companies. Ultrapar Participacoes S.A. is the larger, with a market value of $8.0B against $4.9B — 1.6× the size. Icahn Enterprises L.P. has negative trailing earnings, so its P/E is not meaningful; Ultrapar Participacoes S.A. trades at 11.3×. Ultrapar Participacoes S.A. grew revenue faster over the last twelve months: 20.2% against 10.6%. Ultrapar Participacoes S.A. has the higher net margin (2.29% vs −4.86%) and the higher return on invested capital (15.3% vs 1.84%). Both pay a dividend; Icahn Enterprises L.P. yields more (31.1% vs 2.28%). Across the 21 metrics below, Ultrapar Participacoes S.A. leads on 16 and Icahn Enterprises L.P. on 5.

Valuation

Metric IEP UGP Oil & Gas Refining & Marketing median
P/E n/m 11.25 15.04
P/S 0.44 0.26 0.41
P/B 2.17 1.91 1.87
Price to free cash flow n/m 5.17 8.78
EV/EBITDA 8.91 5.08 7.94
EV/Sales 0.60 0.33 0.59
Earnings yield (10.63%) 8.89% 6.15%
Free cash flow yield (5.39%) 19.34% 10.47%

Profitability

Metric IEP UGP Oil & Gas Refining & Marketing median
Gross margin 14.49% 8.44% 12.22%
Operating margin 1.07% 4.95% 5.35%
Net margin (4.86%) 2.29% 2.08%
Free cash flow margin (2.37%) 5.52% 4.25%
Return on equity (18.50%) 18.40% 11.39%
Return on assets (3.71%) 7.25% 5.22%
Return on invested capital 1.84% 15.25% 11.54%

Growth

Metric IEP UGP Oil & Gas Refining & Marketing median
Revenue growth (TTM) 10.62% 20.23% 13.37%
EPS growth (last fiscal year) 44.68% (25.64%) —
Revenue growth, 5-year CAGR 9.54% 10.10% 12.77%
Net income growth, 5-year CAGR 0.00% 20.45% 0.00%

Health

Metric IEP UGP Oil & Gas Refining & Marketing median
Debt to equity 2.98 0.96 0.44
Current ratio 2.87 1.64 1.32
Net debt to EBITDA 1.12 2.02 2.07

Dividend

Metric IEP UGP Oil & Gas Refining & Marketing median
Dividend yield 31.12% 2.28% 3.64%
Payout ratio — 0.07 0.14

Size

Metric IEP UGP Oil & Gas Refining & Marketing median
Market cap 4.93b 7.99b 4.12b

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